Young Generation Deeply Concerned About Rising National Debt... "8 out of 10 Say 'Increase is Too Fast'"

[Asia Economy Reporter Jeong Hyunjin] Eight out of ten young people feel anxious about the future, including economic burdens, due to the rapid increase in national debt. It was also confirmed that they have a negative view of the current government's fiscal management approach.

On the 24th, the Korea Economic Research Institute under the Federation of Korean Industries commissioned a public opinion survey agency, Mono Research, to survey 700 young people aged 19 to 34 nationwide from the 4th to the 13th on 'Youth Perception of National Debt.' As a result, 76.4% of all respondents evaluated that the recent pace of increase in Korea's national debt is fast. Among them, 31.6% responded that it is 'very fast,' accounting for a high proportion.

The youth cited 'government's discretionary spending expansion' (36.5%) as the main cause of Korea's national debt increase, followed by ▲decreased fiscal revenue due to economic recession (29.1%) ▲increased welfare spending due to low birthrate and aging population (14.3%).

(Data provided by Korea Economic Research Institute)

The appropriate size of Korea's national debt perceived by young people was found to be about 35.1% of the Gross Domestic Product (GDP). By range, more than half of the total respondents, 72.6%, thought that Korea's appropriate national debt ratio (national debt/GDP) should be 40% or less. The Korea Economic Research Institute analyzed, "The expected national debt ratio this year is 47.3%, exceeding the 40% threshold considered the margin for fiscal soundness, and it is expected to increase rapidly in the future," adding, "This result clearly reflects young people's recognition of the need to control the speed of national debt increase."

The youth expressed concerns about the side effects of excessive national debt increase. When asked about the impact of national debt increase, 83.9% of respondents answered that the increase would negatively affect their future lives. Among the negative impacts, the most worrisome was 'increases in various taxes and charges' (47.2%), followed by ▲anxiety about old age due to depletion of pension funds (25.3%) ▲giving up marriage and childbirth due to an unstable future (13.6%).

The Korea Economic Research Institute evaluated, "As a response to the rapid surge in national debt, discussions on tax increases are inevitable in the future, and the fiscal soundness of public pensions is expected to continuously deteriorate, making young people's concerns likely to become a reality."

The proportion of respondents who believed that the increase in national debt would negatively affect not only individuals but also Korea's economy and society reached 83.8%. They cited ▲intensified intergenerational conflicts due to increased burdens on the youth generation (29.8%) ▲income and employment instability due to the possibility of a fiscal crisis (25.2%) ▲increases in public utility charges and inflation (23.7%) as negative social impacts of national debt increase.

(Data provided by Korea Economic Research Institute)

The youth also gave a negative evaluation of the current government's fiscal policy. While 78.4% of all respondents answered that the government is wasting finances by operating them inefficiently, only 21.6% evaluated that the government is managing finances efficiently. To manage national debt and secure fiscal soundness, respondents said policies such as ▲efficiency improvement of fiscal expenditures including expenditure restructuring (27.9%) ▲legislation of fiscal rules (25.9%) ▲strengthening financial management of public enterprises and pension funds (18.8%) ▲strengthening pre- and post-evaluation systems for fiscal projects (17.8%) are necessary.

Choo Kwang-ho, Director of Economic Policy at the Korea Economic Research Institute, said, "National debt is a burden that our future youth must bear, and if national debt continues to increase at the current pace, the anxiety of the younger generation will inevitably grow," adding, "We must start now with bold expenditure restructuring and active fiscal soundness management such as legislation of fiscal rules."

This content was produced with the assistance of AI translation services.